Institutional changes in Iran's economic system in the period of Shah Abbas and Its impact on business activities with due to the constitutionalism theory of Douglass North (996 AH / 1588 AD - 1038 AH / 1629 AD)

Shah Abbas of Safavid dynasty, with a powerful government as the result of the sharing of slaves in power, and giving them military posts; suppressed the force and elements of violence, and gradually strengthened security throughout his realm; roads were fairly safe , theft , killing and robbery was reduced and Trade and transport prospered. Accordingly, some historians describe Abbaschr('39')s era as golden age and the economic flowering of the Safavid period. this conception is directed towards the institutional changes of shah abbas in the political and Social sphere which led to political centrality, road security, construction of Caravanserais and markets, the creation of cities and the establishment of trade relations with foreign countries. although these measures were favourable to the development of trade, and as a result of the reforms, great development occurred in business and The trade boom followed in the short - term but, however, was the kind of economic reform that led to the long - term accumulation of capital and stable economic growth. this is due to institutional barriers which North are divided into formal and informal constraints. this study examines the institutional changes and business conditions and the position of merchants in Shah Abbas I first regarding the theory of Douglas North and tries to examine the economic situation in Iran in the age of Shah Abbas with the theory of New Institutionalism and based on the theory of Adaptition with Linda Hutcheon.